Rubber Market Ends Higher On Supply Tightness Concerns, Firmer Oil Prices

By K. Naveen Prabu

KUALA LUMPUR, Jan 28 (Bernama) -- The Kuala Lumpur rubber market ended higher today, supported by greater expectation of supply tightness, said a dealer.

According to the dealer, rubber output in northern Thailand, Vietnam and the Ivory Coast has begun to taper off as trees enter a seasonal low-production phase, raising concerns over near-term supply availability.

She said higher crude oil prices also lifted market sentiment. 

“Crude oil prices climbed following United States (US) winter storms that disrupted up to 15 per cent of national oil production, improving sentiment across commodity markets,” she told Bernama. 

At the time of writing, Brent crude oil was up 0.04 per cent to US$67.60 a barrel.

However, she said, further gains were capped by a stronger ringgit against the US dollar and weaker US economic data. 

“(This month) US consumer confidence fell to its lowest level in more than 11 years, raising concerns over household spending and downstream demand,” she said.

At 3 pm, Standard Malaysian Rubber (SMR) 20 rose by nine sen to 753 sen per kilogramme (kg), while latex-in-bulk remained unchanged at 575 sen per kg.

-- BERNAMA